KRS 381.9197: Association records -- Financial report.

(1) The association shall keep financial records sufficiently detailed to enable the

association to comply with KRS 381.9203 and, except for the statement of cash

receipts and disbursements which shall be kept on a cash basis, all financial

statements shall be prepared in accordance with generally accepted accounting

principles. All financial and other records shall be made reasonably available for

examination by any unit owner and his or her authorized agents.

(2) Not later than one hundred fifty (150) days af ter the end of the fiscal year, or

annually on a date provided in the declaration or bylaws, the association shall cause

to be prepared by an independent accountant or certified public accountant a

financial report for the preceding fiscal year. No later t han thirty (30) days after the

financial report is prepared and received by the executive board, the association

shall make it available for examination by any unit owner and, upon request and

payment of a reasonable fee, shall provide a unit owner with a copy of the financial

report.

(3) The type of financial report the association shall have prepared under this section

shall be determined as follows:

(a) An association with total annual revenues of less than one hundred thousand

dollars ($100,000) shall h ave prepared a financial statement of cash receipts

and disbursements that disclose all sources of income and expenses by

account and classification;

(b) An association with total annual revenues of at least one hundred thousand

dollars ($100,000) but less than two hundred fifty thousand dollars ($250,000)

shall have prepared a financial report under the standards of a compilation by

a certified public accountant;

(c) An association with total annual revenues of at least two hundred fifty

thousand dollars ( $250,000) but less than five hundred thousand dollars

($500,000) shall have prepared a financial report under the standards of a

review by a certified public accountant; and

(d) An association with total annual revenues of five hundred thousand dollars

($500,000) or greater shall have prepared a financial report under the

standards of an audit by a certified public accountant.

The executive board of an association, in its sole discretion, may elect to have the

financial report required by this subsection p repared in accordance with a higher

standard of care than required for that association's annual revenue level.